Forms and procedure to collect Information under GST
GSTR-1 is a monthly filing on 10 of Subsequent Month which discloses GST liability of Taxpayer.
- GSTR-3B is a monthly filing on 20/22/24 of subsequent month which discloses the details of how GST Liability is discharged.
- GSTR-9 annual filing prior to September of subsequent year which provides consolidated figures for the annual year
- GSTR-9C annual filing prior to September of subsequent year (Previously carried out by a CA/CWA) which reconciliation details of taxpayer between Financial statements.
Based on the details provided an officer may initiate scrutiny proceeding wherein detail assessment is carried out by an officer and the finding are provided to Taxable person in FORM ASMT-10.
Further, a department may initiate an audit proceeding u/s 65 of CGST Act,2017 to extract more details through examination of Books and Documents.
Concerns of a taxpayers
Through scrutiny and audit officers may issue SCN for Tax liability if any determined and not paid by the taxpayer. But the data demanded in each form varies in format and requires different structuring which becomes cumbersome for the taxpayer. Further stretching of such matters and completion of the same shall be carried out in time-bound manner.
Time limits under GST Act for Scrutiny
The law does not prescribe specific time limits for scrutiny of records. It prescribes on scrutinizing the returns and related particulars if an officer discovers any discrepancies He may issue a notice u/s 61 in FORM ASMT-10. However, an audit has a wide coverage rather than scrutiny so on completion of audit an officer shall not initiate a scrutiny proceeding as during an audit returns as well financials and other documents are examined. So there does not arise a case of scrutiny on completion of audits.
GST Act requires a registered person to file GST-9 (annual report) to confirm and correct the data provided in GSTR-1 & 3B during the year and thereafter filing of GSTR-9C (reconciliation statements) to confirm. Then extending the matter again by carrying out the audit would not be feasible for economy as a whole as the important human resource would be deployed and involved in providing a similar data again and again in different forms and in a different manner. Therefore completing a GST Audit in a time bound manner in equally important for an officer as well as taxpayer. Section 65 (4) requires completion of an audit within a period of 3- months However same can be extended by period of 3months on a satisfaction by commissioner that an audit cannot be completed in a period of 3months. These can be further extended for a period of 6 months. Therefore audit needs to be completed in a period of 12 months from the commencement of audit.
In order to complete the audit in a time-bound manner officer may require the registered person to afford him the necessary facility to verify the books of account and also to furnish the required information and render assistance.
Officer shall inform the discrepancies to the registered person and consider his response to such discrepancies for finalization of Findings and issue an order in Form ADT-02 within 30 days and may issue SCN under 73 or 74 for recovery determined by an officer or not paid.
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